The Public Investment Fund, which has been on an overseas acquisition spree recently, is speaking with investment banks about a margin loan backed by some of its investments in the $100 billion Vision Fund. While discussions with banks are ongoing, it may not materialize in a deal, and the fund may also decide against raising the loan.
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PIF, the backbone of Saudi Arabia’s economic transformation plan, is the largest contributor to the Vision Fund after committing $45 billion to invest along with SoftBank founder Masayoshi Son in companies such as WeWork, Oyo Hotels and Uber Technologies Inc.
“PIF is not planning, or even considering, a margin loan backed by its investment in SoftBank Vision Fund,” the Public Investment Fund said in an emailed statement. “PIF has ample liquidity and has not been engaged with anyone to raise margin loans against its Vision Fund stake.” (The Vision Fund, which contributed more than half of the conglomerate’s profit a year ago, has swung to record losses.)
PIF’s investment drive has seen it build stakes in some of the world’s largest companies since the start of the coronavirus pandemic. On Friday, it disclosed stakes in companies including Facebook Inc., Boeing Co., and Citigroup Inc.
The fund is looking into “any opportunity” arising from the economic wreckage of the crisis, its governor, Yasir Al-Rumayyan, said at a virtual event in April. The fund expects to see “lots of opportunities,” he predicted at the time, citing airlines, energy and entertainment companies as examples.
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